360 Price Drop: Too Good to be True

Ok, so yesterday, Microsoft announced the cut back of Xbox 360 shipment guidance for 2007. Not a big deal, considering most gamers already HAVE Xbox 360’s and this is normal to see when consoles are out for a while.

Well, there may have been more to that than you thought. Gamasutra reports that Lazard Capital Markets’ Colin Sebastian commented on a pricedrop for the console is “unlikely” in early 2007.

In a research note to investors, Sebastian commented on the announcement saying, “Based on the company’s revised unit guidance and stated focus on segment profitability, we now believe that a price cut on Xbox 360 hardware is unlikely in early 2007.”

“However,” he adds, “we would not yet rule out a price reduction or promotional hardware/software bundle before the end of the calendar year depending, in part, on the competitive landscape.”

Now, this isn’t too surprising. But some (including me) [Editor's Note: And me] were hopeful for a price drop.

Remember, if you will, a few weeks ago on the podcast about leaked pictures of the ”Zephyr”: an Xbox 360 with HDMI support and a spiffy 120 GB hard drive. Surprisingly, the pictures indicated a THIRD SKU possibly in the works, meaning (hopefully) a price drop for the other models. Unfortunately, a Microsoft exec noted that the 120 GB model was just a “concept,” and we probably won’t see it on shelves.

But I wouldn’t get too disappointed. A price drop is extremely likely to happen this year, considering the heavy hitters we will be seeing on the console (Halo 3, GTA 4, Mass Effect, Too Human, etc.). And that price drop might force Nintendo to make a drop sooner than expected.

So, here’s a question for you. Do you think a 360 price drop would lure in enough in order to become the dominant system this generation? Cause 2007’s the bloodbath, baby! One price drop could change the tide of war.

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